Magnetic nanocomposite materials are composites of magnetic and insulator materials and have ultrafine grains or particles with dimensions of less than 300 nanometers. When small enough particles of magnetic materials, of order 2-300 nm in size, are sheathed in thin layers of insulators, of order 1-50 nm in thickness, and formed in such a way that the exchange coupling between the particles of nearest neighboring particles is realized, the resulting materials have both excellent magnetic and insulating properties. Materials of this sort have been made into useful forms for electronic devices such as inductors by techniques such as squeegee application of epoxies loaded with such particles or by electroplating. Such techniques are useful for films of 100-1000 microns and 5-100 microns, respectively that are useful in forming thick film passive devices such as inductors. However, for devices integrated within a semiconductor wafer or thin film passive device wafer, film thicknesses of less than a few microns are desired. Accordingly, there is a need for a thin film deposition technique for magnetic nanocomposite materials that is appropriate for integration with conventional IC wafer and Integrated Passive Device fabrication.